Beyond efficiency and stability, however, are implications for how a bank’s core enables its business strategy and broader technology strategy and supporting products. (Support my bank’s growth and business strategy came in fourth in the survey.) For example, if a bank’s technology strategy is based on a best of breed approach that allows the bank to shop around for the most suitable solutions for specific functions, core extensibility becomes very important, while any bank comfortable pursuing a best of suite approach will likely not have the same needs. Thus, the key question to ask is, “What capabilities from a core provider are critical to the success of my bank’s strategic goals?”

By exploring that question, bankers should have a better grasp on what to push for from their vendor and why. Though answers will be different for each institution, the ABA survey covers tactical decisions that dovetail with what some of these strategic needs might be. Results touch on, for example, the data access required for analytics and reporting (driven by a data strategy), the ease of adding new solutions, from either a core provider or a third-party service (driven by the need for features), and the quality and timely delivery of banking products and services (important to the pace of technical change). Some of the survey results read like reminders for bankers as they evaluate their core’s abilities.

According to our research, core vendors have moved, albeit slowly, to address many banks’ desires to change more quickly, use the data they have, and differentiate their products and services. Incremental changes to a core or the rest of the technology stack may feel comfortable to risk-averse institutions, but that movement may not be enough, quickly enough, to meet forward-thinking banks’ desires. The answer could be a major technology project, up to or including a new abstraction layer or core.

As core contracts come up for renewal, bankers should think beyond the “here and now” of the core and core provider — foundational functionality and customer service — to the capabilities they need to execute a technology strategy that supports a competitive business strategy. It’s important for bankers to remember that the technology picture is bigger than what comes out of the box.